Because of Increasing Marginal Cost, Most Supply Curves

question 84

Multiple Choice

Because of increasing marginal cost, most supply curves

• A) are horizontal.
• B) are vertical.
• C) have a negative slope.
• D) have a positive slope.

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Definitions:

Borrowing

The process of obtaining funds from lenders with a promise to repay, generally with interest, at a future date.

Repurchase

The act of buying back shares of its own stock by a company, reducing the number of outstanding shares in the market.

Equity Financed

The practice of raising capital for a business through the sale of shares in the company.

Cost of Debt

The effective rate that a company pays on its current debt, which can include bank loans, bonds, and other forms of debt.